Analysis of investment decisions in new product launch Essay

Analysis of investment decisions in new product launch - Essay Example The paper tells that launching of a new product is a major investment decision for any corporation and hence needs to be evaluated thoroughly in order to avoid huge financial setbacks. A good number of big and a host of slightly smaller business have, nowadays, become extremely cautious and refined in the manner in which they economically assess key investment decisions concerning substantial fixed assets. This fact has been authenticated by the abundant research studies which document the need felt by companies to appraise the economic viability of the new product and take into consideration various key investment decisions prior to plunging into the relatively new territory. However, there is still a dearth of comprehensive studies concerning the actual investment decisions taken by these large corporate houses, with respect to launching and/ or marketing of new products in the market. Researchers such as Barwise, Marsh and Wensley investigated the role of finance and investment de cisions with respect to strategic decision making process. Any type of strategic investment entails a detailed analysis of its long term prospects as well as its economic viability. With respect to organizations, it commences with a decision to develop a wide-ranging long term development agenda, which is followed by a detailed analysis of the various short term measures, for instance, premeditated obsolescence, which is done with a view to acquire an edge over their corporate rivals.